MAKING THE CASE FOR CLIMATE ACTION: CREATING NEW JOBS AND CATALYZING ECONOMIC GROWTH
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MAKING THE CASE FOR CLIMATE ACTION:
CREATING NEW JOBS AND CATALYZING
ECONOMIC GROWTH
HEARING
BEFORE THE
SELECT COMMITTEE ON THE
CLIMATE CRISIS
HOUSE OF REPRESENTATIVES
ONE HUNDRED SEVENTEENTH CONGRESS
FIRST SESSION
HEARING HELD
APRIL 20, 2021
Serial No. 117–3
(
www.govinfo.gov
Printed for the use of the Select Committee on the Climate Crisis
U.S. GOVERNMENT PUBLISHING OFFICE
44–754 WASHINGTON : 2021
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SELECT COMMITTEE ON THE CLIMATE CRISIS
ONE HUNDRED SEVENTEENTH CONGRESS
KATHY CASTOR, Florida, Chair
SUZANNE BONAMICI, Oregon GARRET GRAVES, Louisiana,
JULIA BROWNLEY, California Ranking Member
JARED HUFFMAN, California GARY PALMER, Alabama
A. DONALD MCEACHIN, Virginia BUDDY CARTER, Georgia
MIKE LEVIN, California CAROL MILLER, West Virginia
SEAN CASTEN, Illinois KELLY ARMSTRONG, North Dakota
JOE NEGUSE, Colorado DAN CRENSHAW, Texas
VERONICA ESCOBAR, Texas ANTHONY GONZALEZ, Ohio
----
ANA UNRUH COHEN, Majority Staff Director
MARTY HALL, Minority Staff Director
climatecrisis.house.gov
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STATEMENTS OF MEMBERS OF CONGRESS
Page
Hon. Kathy Castor, a Representative in Congress from the State of Florida,
and Chair, Select Committee on the Climate Crisis:
Opening Statement ........................................................................................... 1
Prepared Statement ......................................................................................... 3
Hon. Garrett Graves, a Representative in Congress from the State of Lou-
isiana, and Ranking Member, Select Committee on the Climate Crisis:
Opening Statement ........................................................................................... 4
Hon. Doris Matsui, a Representative in Congress from the State of California,
prepared statement, submitted for the record by Ms. Castor .......................... 65
WITNESSES
Hon. Philip N. Bredesen, Executive Chairman of the Board, Clearloop Cor-
poration; and Former Governor, State of Tennessee
Oral Statement ................................................................................................. 6
Prepared Statement ......................................................................................... 8
Paul Lau, CEO and General Manager, Sacramento Municipal Utility District
(SMUD)
Oral Statement ................................................................................................. 10
Prepared Statement ......................................................................................... 12
Leticia Colon de Mejias, Founder, Energy Efficiency Solutions; Policy Co-
Chair, Building Performance Association; and President, Green Eco War-
riors
Oral Statement ................................................................................................. 15
Prepared Statement ......................................................................................... 18
Heather Reams, Executive Director, Citizens for Responsible Energy Solu-
tions (CRES)
Oral Statement ................................................................................................. 25
Prepared Statement ......................................................................................... 26
SUBMISSIONS FOR THE RECORD
Press release from SEIA, ‘‘Solar Companies Unite to Prevent Forced Labor
in the Solar Supply Chain,’’ submitted for the record by Ms. Castor .............. 54
Fact sheet from the Obama Administration’s White House Council on Eco-
nomic Advisors, FACT SHEET: The Recovery Act Made The Largest Single
Investment In Clean Energy In History, Driving The Deployment Of Clean
Energy, Promoting Energy Efficiency, And Supporting Manufacturing, sub-
mitted for the record by Ms. Castor ................................................................... 54
Letter from the Outdoor Business Climate Partnership to the Select Com-
mittee in support of April 15, 2021 hearing, submitted for the record
by Ms. Castor ....................................................................................................... 54
Letter from the We Mean Business Coalition to President Biden in support
of U.S. climate target, submitted for the record by Ms. Castor ....................... 55
Letter from environmental groups to Congressional leadership on economic
recovery legislation, submitted for the record by Ms. Castor ........................... 55
Letter from the Solar Energy Industry Association (SEIA) to Chair Castor
regarding the Select Committee’s April 20, 2021 hearing, submitted for
the record by Ms. Castor ..................................................................................... 63
Report from Rhodium Group, ‘‘Pathways to Build Back Better: Jobs from
Investing in Clean Electricity,’’ submitted for the record by Ms. Castor ........ 64
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Page
APPENDIX
Questions for the Record from Hon. Kathy Castor to Hon. Philip N. Bredesen ..... 66
Questions for the Record from Hon. Garret Graves to Hon. Philip N.
Bredesen ............................................................................................................... 67
Questions for the Record from Hon. Kathy Castor to Paul Lau .......................... 67
Questions for the Record from Hon. Kathy Castor to Leticia Colon de Mejias .. 70
Questions for the Record from Hon. Garret Graves to Leticia Colon de Mejias ..... 74
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CREATING NEW JOBS AND CATALYZING
ECONOMIC GROWTH
TUESDAY, APRIL 20, 2021
HOUSE OF REPRESENTATIVES,
SELECT COMMITTEE ON THE CLIMATE CRISIS,
Washington, DC.
The committee met, pursuant to call, at 12:01 p.m., via Zoom,
Hon. Kathy Castor [chairwoman of the committee] presiding.
Present: Representatives Castor, Bonamici, Brownley, Huffman,
McEachin, Levin, Casten, Escobar, Graves of Louisiana, Palmer,
Carter, Miller, and Gonzalez of Ohio.
Ms. CASTOR. All right. Good afternoon. The committee will come
to order.
Without objection, the chair is authorized to declare a recess at
any time. As a reminder, members participating in a hearing re-
motely should be visible on the camera throughout the hearing.
As with in-person meetings, members are responsible for control-
ling their own microphone. Members can be muted by staff, but
only to avoid inadvertent background noise.
In addition, statements, documents, or motions must be sub-
mitted to the electronic repository, to sccc.repository@mail.house.
gov.
Finally, if any members or witnesses have any technical prob-
lems, please inform the committee staff immediately.
And thanks again for being here today. Thanks for joining this
hearing remotely. We all look forward to getting back to normal.
It is a little bit down the road, but we all look forward to that time.
Last week, we discussed the physical, economic, and health im-
pacts of the climate crisis and the escalating costs of inaction.
Today, we are looking at the benefits for our country and work-
ers, all of the benefits that come with solving the climate crisis.
So I will recognize myself for 5 minutes for an opening state-
ment.
Well, happy Earth Week, and happy U.S. Climate Action Week.
I am inspired by the growing consensus across the economy, across
the entire country, for clean energy solutions and jobs.
Whether it is public health experts, union leaders, investors, sci-
entists, farmers, or executives at America’s largest companies, we
have grown an enormous coalition that is ready to solve the climate
crisis.
Just last week, some of America’s largest employers, including
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Walmart, McDonald’s, Target, Starbucks, and hundreds of other
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businesses and investors, announced their support for an ambitious
new target to reduce our carbon emissions over the next decade.
In just a couple of days, President Biden will unveil that new
target as he welcomes global heads of state to his Leaders Summit
on Climate and urges other countries to go farther and faster.
America is ready not only to rejoin the global effort to keep glob-
al climate impacts in check, but lead again. Why? Because we
know we can create millions of jobs and economic opportunities
across America.
Last week, we held a very important hearing on the cost of fail-
ing to act on the climate crisis. So it is only fitting that today’s
hearing will focus on the enormous economic benefits of climate so-
lutions.
Building a clean economy will create millions of good-paying jobs
across every ZIP Code in America, it will jump-start our economic
recovery, and ensure that we can compete in a world that increas-
ingly runs on clean technologies. Plus, it will strengthen our resil-
ience while helping reduce costs to our communities and our neigh-
bors back home.
I cannot overstate the importance of reducing those risks and
costs. Eleven years ago today, an oil rig operated by BP in the Gulf
of Mexico exploded, killing 11 people and ultimately gushing 4 mil-
lion barrels of oil into Gulf waters.
The BP Deepwater Horizon oil disaster cost over $60 billion to
clean up. It cost Florida billions of dollars in lost tourism revenue.
And I had to look those business owners, mom-and-pop shops on
the coast, in the eye during this disaster as that gushed day after
day into the Gulf and really hurt our economy as we were trying
to recover from the Great Recession.
It became a very painful reminder of the need to move to cleaner
energy sources instead of waiting for the next disaster to strike.
It is time we put Americans to work unleashing that potential,
which will help us avoid those type of catastrophes. That is what
the Democrats on this committee proposed last year in our Climate
Crisis Action Plan. And, according to an independent analysis of
our Action Plan, we could save Americans more than a trillion dol-
lars annually by 2050 by solving the climate crisis.
That is because switching to cleaner sources of energy will un-
leash enormous economic benefits and health benefits for America’s
families. And we can build that future by employing millions of
workers and ensuring they have safe working conditions and fam-
ily-sustaining wages.
We have a lot of work to do. Whether it is laying new trans-
mission lines, replacing lead pipes, or plugging millions of aban-
doned oil wells, we will make sure that those job opportunities go
to our middle-class workers.
We can also revitalize the American manufacturing sector
through smart investments and 21st century technologies, includ-
ing electric vehicle chargers and batteries that will power school
buses, postal trucks, and more.
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Congress has an opportunity to grow jobs across the country as
we advance President Biden’s American Jobs Plan.
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By invoking America’s can-do spirit, rolling up our sleeves to
solve the climate crisis, we will help ourselves, and we will help the
rest of the world.
The United States has emitted more carbon pollution than any
other country in history, accounting for 25 percent of historical
emissions.
While we have cut emissions in recent years, we know from cli-
mate science that we need to do more and invent and manufacture
the technologies in the USA to provide the solutions to the world.
Today, we have a great slate of witnesses who will highlight the
ways we can do that, reducing pollution, driving economic growth,
and creating good-paying jobs for all Americans.
I look forward to today’s discussion.
At this point, I will recognize Ranking Member Garret Graves for
his opening statement.
You are recognized for 5 minutes.
[The statement of Ms. Castor follows:]
Opening Statement of Chair Kathy Castor
Hearing on ‘‘Making the Case for Climate Action:
Creating New Jobs and Catalyzing Economic Growth’’
Select Committee on the Climate Crisis
April 20, 2021
As prepared for delivery
Welcome everyone. And happy U.S. Climate Action Week! I’m so inspired by the
level of support we’ve seen across the economy for clean energy solutions and jobs.
Whether it’s public health experts, union leaders, investors, scientists, farmers, or
executives at America’s largest companies, we’ve grown an enormous coalition that
is ready to solve the climate crisis. Just last week, some of America’s largest em-
ployers—including Walmart, McDonald’s, Target, and Starbucks—announced their
support for an ambitious new target to reduce our emissions over the next decade.
In just a couple of days, President Biden will unveil that new target, as he welcomes
global heads of state to his Leaders Summit on Climate. America is ready not only
to rejoin the global effort to keep climate impacts in check but lead again. Why?
Because we can create millions of jobs and economic opportunities across America.
Last week, we held an important hearing on the costs of failing to act on the cli-
mate crisis. So it’s only fitting that today’s hearing will focus on the enormous eco-
nomic benefits of climate solutions. Building a clean economy will create millions
of good-paying jobs across every zip code in America. It will jump-start our economic
recovery and ensure we can compete in a world that increasingly runs on clean tech-
nologies. And it will strengthen our resilience while helping reduce costs to our com-
munities.
I can’t overstate the importance of reducing those risks and costs. Eleven years
ago today, an oil rig operated by BP in the Gulf of Mexico exploded, killing 11 peo-
ple and ultimately gushing 4 million barrels of oil into Gulf waters. The BP oil dis-
aster cost over $60 billion dollars to clean up. It cost Florida billions in lost tourism
revenue. And it became a painful reminder of the need to move to cleaner sources
of energy, instead of waiting for the next disaster to strike.
It’s time we put Americans to work unleashing that potential, which will help us
avoid future catastrophes. That’s what the Democrats on this committee proposed
last year in our Climate Crisis Action Plan. According to an independent analysis
of our Action Plan, we could save Americans more than a trillion dollars annually
by 2050 by solving the climate crisis. That’s because switching to cleaner sources
of energy will unleash enormous economic benefits for America’s families, including
health benefits. As we build that future, we’ll employ millions of workers and ensure
they have safe working conditions and family-sustaining wages.
We have a lot of work to do. Whether it’s laying new transmission lines, replacing
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lead water pipes, or plugging millions of abandoned oil wells across the United
States, we’ll make sure those job opportunities go to our middle-class workers. We
can also revitalize the U.S. manufacturing sector through smart investments in 21st
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century technologies, including electric vehicle chargers and batteries that will
power school buses, postal trucks, and more.
Congress has the opportunity to grow jobs across the country, as we advance
President Biden’s American Jobs Plan. By invoking America’s can-do spirit, and roll-
ing up our sleeves to solve the climate crisis, we will help ourselves and the rest
of the world. The United States has emitted more carbon pollution than any other
country in history, accounting for 25% of historical emissions. While we’ve cut emis-
sions in recent years, we know from climate science that we need to do even more,
and invent and manufacture the technologies in the U.S.A. to provide solutions to
the rest of the world.
Today, we have a great slate of witnesses who will highlight the ways we can do
that, reducing pollution, driving economic growth, and creating good-paying jobs for
all Americans.
I look forward to today’s discussion.
Mr. GRAVES. All right. Thank you, Madam Chair. I appreciate it.
I want to thank all the witnesses for being here today and the
members of our committee.
I also want to remind, as our chair did last week, that our col-
league, Dan Crenshaw, remains in, I guess, in the after-treatment
for his eye issue. And I would just urge all of you please keep him
in your prayers for his full recovery.
Madam Chair, creating American jobs, charting a path for a
clean energy future, reducing emissions should be something that
all of us on this committee, regardless of party affiliation,
ideologies, should be supportive of.
Let me say that again. Job creation, creating jobs here in Amer-
ica, reducing emissions, charting a path of an America-based re-
source, clean energy future is something that we should all agree
upon.
But we also have to keep in mind, in order to realize some of the
benefits that you just cited, this is not something that we can sole-
ly do domestically. This truly is a global issue. These are global
emissions. The emissions must be reduced across the globe, not just
those in the United States.
There are two primary kind of path components that we need to
be very thoughtful of as we move forward. We have got to develop
the innovative energy technologies. And, Madam Chair, you even
cited the innovation of this sort of American spirit that we have
here, where we are able to create these technologies, where we can
create an environment where we let innovators innovate.
But we have got to do it in a way that protects the intellectual
property, that grounds the jobs in the United States and doesn’t ex-
port them overseas, that doesn’t allow for this pirating or theft of
our intellectual property, of our innovative ideas.
We have got to incentivize our workers here to be able to create
and retain the jobs here. We have got to ensure that the tech-
nologies are cost competitive, that they are exportable, because
only then will we actually see this global reduction.
Secondly, we have got to develop and utilize American resources.
Madam Chair, I noted at the last hearing that, through 2050, we
are going to see a 40 percent increase in global demand for natural
gas, for example.
As we have cited from the National Energy Technology Lab’s
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analysis, U.S. natural gas has a much lower emissions profile than
that of other countries.
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And so, if there is going to be a 40 percent increase in demand
globally, let’s ensure that that demand is met by U.S. resources.
Let’s ensure, as we continue blazing trails and being the global
leader in reducing emissions, it is based upon U.S. resources.
The Federal Government doesn’t do a lot of things well. It is a
very large organization. There is a lot of red tape involved. The last
thing we need to have the Federal Government doing is picking
technological winners and losers.
If we can reduce emissions through unconventional means, then
we should be reducing emissions and pursuing clean energy strate-
gies regardless of the source. And I am concerned that some of the
paths forward, trying to have the Federal Government choosing
technological winners and losers—and I only have to cite examples
such as Solyndra—as to why that doesn’t make sense for America
and for American taxpayers.
Madam Chair, we have often talked about and I have heard
many people on this committee cheer the successful outcome of the
Paris Accords. I want to remind everyone, the Paris Accords codify
a global increase in emissions. We are all here talking about reduc-
ing emissions. We should not be celebrating global accords that re-
sult in the emissions actually going in the wrong direction.
And that is why I was very excited that Secretary Kerry was en-
gaging, for example, China, that has increased emissions four times
for every one ton—four tons for every one ton we have reduced here
in America.
Madam Chair, in closing, I have cited some of the lessons learned
in terms of flawed paths forward that have resulted in lessons
learned from us, the Federal Government, not picking winners and
losers, making sure the global accords reduce emissions, and I have
got to point out one other.
Even in the infrastructure package that is being proposed—and
I know that all of us on this committee support infrastructure—a
recent analysis by the National Association of Manufacturers has
indicated that is actually going to result in a million job losses in
just the first 2 years and projected to result in a loss of 600,000
American jobs each year for 10 years following.
So, Madam Chair, we have got to make sure that we are pur-
suing this in a way that is going to result in jobs not just being
created, but being retained here in the United States.
Thank you. I yield back.
Ms. CASTOR. Thank you.
Without objection, members who wish to enter opening state-
ments into the record have 5 business days to do so.
Now I would like to welcome our witnesses. We have a great
panel today. This is a panel that is going to provide us with great
insight on how we can create jobs and catalyze economic growth as
we move forward on climate solutions.
First, the Honorable Phil Bredesen is the former Governor of
Tennessee, the former Mayor of Nashville, and a successful entre-
preneur. He founded Silicon Ranch, one of the largest solar inde-
pendent power producers in the country.
Governor Bredesen is now the Executive Chairman of Clearloop
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Corporation, a startup in Nashville that partners with companies
to offset their emissions by building new solar projects in American
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communities that are looking for new economic development oppor-
tunities.
Next, Mr. Paul Lau, highly recommended from our colleague,
Congresswoman Doris Matsui of Sacramento. He is the CEO and
General Manager of the Sacramento Municipal Utility District. He
was previously the utility’s Chief Grid Strategy and Operations Of-
ficer, where he managed power supply and distributed energy re-
sources. Mr. Lau is also a board member of the Electric Transpor-
tation Community Development Corporation.
SMUD has a long history of innovation. And, again, Congress-
woman Matsui is so proud to represent you all in the Congress.
Ms. Leticia Colon de Mejias is the founder and CEO of Energy
Efficiency Solutions, a Connecticut-based small business providing
energy conservation services. She also is the Policy Co-chair of the
Building Performance Association and the founder of Green Eco
Warriors, a nonprofit focused on environmental education for young
people.
Finally, Ms. Heather Reams is the Executive Director of Citizens
for Responsible Energy Solutions, a nonprofit organization that en-
gages policymakers and the public on energy, economic, and envi-
ronmental security issues. She is also the Chair of the National
Clean Energy Week, which is an annual forum for discussions
around innovative technologies and policies.
Without objection, the witnesses’ written statements will be
made part of the record.
With that, Governor Bredesen, you are now recognized to give a
5-minute presentation of your testimony. Welcome.
And don’t forget to unmute.
STATEMENTS OF THE HONORABLE PHILIP N. BREDESEN, EX-
ECUTIVE CHAIRMAN OF THE BOARD, CLEARLOOP COR-
PORATION, FORMER GOVERNOR, STATE OF TENNESSEE;
PAUL LAU, CEO AND GENERAL MANAGER, SACRAMENTO MU-
NICIPAL UTILITY DISTRICT (SMUD); LETICIA COLON DE
MEJIAS, FOUNDER, ENERGY EFFICIENCIES SOLUTIONS;
POLICY CO–CHAIR, BUILDING PERFORMANCE ASSOCIATION;
AND HEATHER REAMS, EXECUTIVE DIRECTOR, CITIZENS
FOR RESPONSIBLE ENERGY SOLUTIONS (CRES)
STATEMENT OF THE HONORABLE PHILIP N. BREDESEN
Mr. BREDESEN. You would think by this point I would know that.
I would say, first of all, thank you, Chair Castor, Ranking Mem-
ber Graves, and each of the select committee members for the invi-
tation to be here today.
Policy debates in the public sector seem to always be surrounded
by a lot of noise and irrelevant information. It is the nature of the
beast. But climate action seems to attract even more than most.
As a former governor, I sympathize with the challenge that mem-
bers of the committee face, taking a complex issue like this and
cutting through the noise to try to understand the big shapes.
In my testimony today, I want to describe what I believe to be
two of those big shapes in this issue.
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The first one is this: the urgent need to better focus our efforts.
I respectfully say to everyone who cares about climate action that
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we need to stop chasing every glittering idea and instead ask our-
selves a question: Where is the low-hanging fruit? Where is the
first place to go?
I believe that question has an answer, and that is the lowest-
hanging fruit is the generation of electricity in this country. Power
generation, even after all the progress we have made with renew-
ables and with natural gas, still creates 25 percent of all green-
house gas emissions in the United States.
To put that in perspective, our grid today produces more green-
house gases than every car on the road and every airplane in the
sky in America. The rise of electric cars and the power demand
that follows will put an even bigger strain on this grid.
The electric grid is an enormous opportunity for decarbonization.
The tools are already in place. The technology is mature. The eco-
nomics makes sense. Renewable energy has been around a while.
It is no longer this year’s show horse. But it really is the workhorse
that we need right now to get started in a serious way.
The second big shape is simply the one that the select committee
is addressing, that climate action is a potent tool for economic de-
velopment and job creation. A coalition built around legislative and
regulatory action to compel climate action, I believe, is too narrow
for us to get the job done today.
Fortunately, there is a broader one waiting to be built around
creating jobs, creating new tax base, and opportunities for the next
generation of entrepreneurs. I think the challenge we have is to
convince skeptics that the economic benefits are real and they are
not just talking points.
Solar generation is a good example. By its nature, it is highly
distributed, with the benefits spread broadly across the country
rather than dotted it in a few places like new factories would be.
Large tracts of land are needed, and that means rural and often
distressed communities are great candidates for these investments.
In those communities, it creates much- appreciated local jobs while
it is being built. And, once it is built, it provides tangible local ben-
efits, including, importantly, huge support for the tax base in these
areas for decades to come.
The way that energy is generated in America is really under-
going a fundamental shift that is going to continue for decades. In
fact, 2020 was the third consecutive year for record-setting new
corporate investment and new renewable energy projects here in
North America. Yet the distribution of clean energy investments is
often disjointed and uneven.
In the United States, the simple fact of turning on the light can
have a significantly bigger carbon impact if you live in Nashville,
Tennessee, for example, than if you live in San Francisco. That is
because the electric grid is broken up into a number of regions, and
they each have a number of different power sources.
Two years ago, as the chair mentioned, I helped co-found a start-
up called Clearloop, with the goal of cleaning up the grid and ex-
panding access to clean energy by opening up investment in solar
to many more kinds of companies and organizations.
We are shifting the way corporate investments reduce carbon by
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trying to bring solar projects to regions of the country that have
the most carbon-intense electric generation. We believe that doing
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things this way will achieve deeper and faster emissions reduc-
tions, and also brings good-paying clean energy jobs and economic
investment in regions of the country that need them.
This week, Clearloop is announcing that Silicon Valley-based In-
tuit, Philadelphia’s Dropps, Seattle’s CoolPerx, Nashville’s NHL
team, the Predators, are partnering with us to help fund the con-
struction of a solar project in Jackson, Tennessee. That is an area
between Memphis and Nashville, in the heart of rural west Ten-
nessee.
We are just getting started, but what we are proving with
Clearloop is that corporate climate action promotes real economic
investment in communities who are looking to attract investment
and talent. And I believe that, if we focus and use this change to
build American infrastructure where it is most needed, we can help
the American people, we can help our nation, and we can help our
planet.
Thank you.
[The statement of Mr. Bredesen follows:]
Prepared Statement of Hon. Philip N. Bredesen, Executive Chairman of
Clearloop Corporation and Former Tennessee Governor
Before the House Select Committee on the Climate Crisis
‘‘Making the Case for Climate Action:
Creating New Jobs and Catalyzing Economic Growth’’
Tuesday, April 20, 2021 12:00 p.m. ET
First, thank you Chair Castor, Ranking Member Graves and each of the Select
Committee members for the invitation to be here today.
Policy debates in the public sector seem to be always surrounded by a lot of noise
and irrelevant information—it’s the nature of the beast—but climate action seems
to attract even more than most. As a former Governor, I sympathize with the chal-
lenge you face: to take a complex issue like this, cut through the noise and try to
see the underlying big shapes.
In my testimony today, I want to step back with you and describe to you what
I believe to be a couple of those big shapes.
The first one is this: the urgent need to better focus our effort. I respectfully say
to everyone who cares about climate action: stop chasing every glittering new idea
and instead ask a question. There’s a lot of ideas around, but which of them will
really make a difference? Where’s the low-hanging fruit?
That question has an answer: The lowest-hanging fruit is the generation of elec-
tric power. Power generation, even after all the progress we’ve made with renew-
ables and conversion to natural gas in the past decade, still creates 25% of all green-
house gas emissions in the United States.1 To put that in perspective, American
power generation produces more greenhouse gases than every car on the road and
every airplane in the sky. Half-again as much. The coming boom of electric cars and
the power demand that follows will make the carbon emissions from our power sec-
tor even worse.
The electric grid is an enormous opportunity for decarbonization and an easy one
to clean up with the tools that are already in place. The technology is mature—no-
body has to invent anything. Solar panels, for example, are efficient, easy to manu-
facture and continue to get better. And the economics are there also: solar power
today is the low-cost alternative. Renewable energy has been around a while; it’s
no longer this year’s show-horse. But it’s what we need right now: a genuine work-
horse we can ask and trust to do the job.
The second big shape is simply the one that this Select Committee is addressing:
that climate action is a potent tool for economic development and job creation. In
business terms, climate action shouldn’t be thought of as a cost center, but as a rev-
enue and profit center. A coalition built around legislative and regulatory action to
compel climate action is too narrow. Fortunately, there’s a far broader one waiting
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to be built around creating jobs, a new tax base, and opportunities for the next gen-
1 https://www.epa.gov/ghgemissions/inventory-us-greenhouse-gas-emissions-and-sinks
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eration of entrepreneurs. The challenge we have is to convince skeptics that the eco-
nomic benefits are real and not just talking points.
While there are many opportunities to create jobs and wealth through climate ac-
tion, renewable energy can be particularly effective in this regard. Solar generation
is a good example: by its nature it is highly distributed, with the benefits spread
broadly across the country rather than being dotted in a few places like new fac-
tories. It needs large tracts of land that are not too expensive, and that means rural
and often poorer communities are great candidates for these investments. In those
counties, it creates much appreciated local jobs while it is being built—a large-scale
solar facility might use 500 or 600 workers during its construction.
Once a solar project is built, it provides tangible local benefits for decades. The
good news is that clean energy has been on the rise year over year over the past
decade. In fact, after leaving the governor’s office a decade ago, I helped found a
company, Silicon Ranch, that today boasts over 1 GW of owned and operated solar
projects across the U.S.
With Silicon Ranch, we built solar farms across the South where they oftentimes
become the largest taxpayer in the county the day they open. In some of these com-
munities, a solar power plant is the first substantial industrial investment in gen-
erations. The taxes the project pays go directly to badly-needed new investments,
as a solar plant uses few public services—it adds no costs to law enforcement, or
fire protection, or the school system. This led to a county giving its teachers a raise
as a direct result of the new tax revenues produced by the solar project investment.
In Georgia, Governor Kemp, a conservative Republican who has expressed deep
skepticism about global warming, has come to several of our announcements. He
comes because he’s seen how these clean energy projects are boosting some of the
poorer rural counties in his state. His economic development team prioritizes solar
development in Georgia for precisely this reason.
The way in which energy is generated in America is undergoing a fundamental
shift that will continue for decades. Clean energy growth has been fueled by private
sector investment with large tech companies and manufacturers becoming the larg-
est purchasers of renewable energy projects through Power Purchase Agreements.
In fact, 2020 was the third consecutive year for record-setting corporate investment
in new renewable energy projects in North America.2
Yet, the distribution of clean energy investments is often disjointed and uneven.
In the United States, the simple act of turning on the lights or plugging in your
electric vehicle can have a significantly bigger carbon impact if you live in Nashville,
Tennessee, than if you lived in San Francisco, California. That’s because the electric
grid is broken up into several grid regions, all with a different mix of power
sources.3 In fact, every megawatt hour of electricity consumed by the California Del-
egation’s constituents generates about 500 lbs. CO2, while constituents in Chair
Castor’s and Ranking Member Graves’ districts get hit with almost double the car-
bon pollution every time they flip on the lights for the same amount of time.4
Two years ago, I helped co-found a startup called Clearloop with the goal of clean-
ing up the grid and expanding access to clean energy, starting in our own backyard.
After realizing how partisan politics were corroding common sense action, I
partnered with two younger Tennesseans, who also believed that we shouldn’t wait
around for others to help, instead we needed to take matters into our own hands.
We fundamentally believe that the innovation and benefits of new clean energy in-
vestments should reach all communities around our country equally. We recognized
that between tech companies and small businesses, there are lots of companies that
want to take climate action, but need more ways to invest in these new clean energy
projects.
The world of corporate sustainability is full of well intentioned people, but many
traditional climate solutions have simply nibbled at the edges of climate change
with programs that lack transparency and bold action. Clearloop partners with com-
panies big and small to offset their carbon footprint and expand access to clean en-
ergy by cleaning up the grid with the construction of new solar capacity in American
communities otherwise getting left behind. Clearloop is shifting the way corporate
investments reduce carbon by bringing solar projects to regions of the country with
disproportionately carbon-intense electricity generation (i.e. dirty grids).5 We believe
2 https://rebuyers.org/deal-tracker/
3 https://www.nytimes.com/interactive/2020/10/28/climate/how-electricity-generation-changed-
in-your-state-election.html?utm_campaign=Carbon%20Brief%20Daily%20Briefing&utm_content=
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20201029&utm_medium=email&utm_source=Revue%20Daily
4 https://www.epa.gov/sites/production/files/2021-02/documents/egrid2019_summary_tables.pdf
5 http://map.clearloop.us/
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doing things this way will achieve deeper, and faster emissions reductions. It will
also bring good-paying, clean energy jobs, and spur economic investment in regions
of the country that vitally need them.
This week, Clearloop is announcing that Silicon Valley based Intuit, Philadelphia
based Dropps, Seattle based CoolPerx, and Nashville’s NHL team, Nashville Preda-
tors are partnering with us to help fund the construction of a 1 MW solar project
in Jackson, Tennessee. A city nestled in between Memphis and Nashville and at the
heart of rural west Tennessee.
We’re just getting started and have a long way to go as a small startup, but what
we’re proving with Clearloop is that corporate climate action can spur real economic
investment in communities looking to attract more investment and talent. By being
intentional about where we are building these solar projects, focusing on
decarbonization, but also an emphasis on distressed communities, these ‘‘unsexy’’ in-
frastructure investments are the vehicle for growing the tax base in communities,
and building workforce development programs for trades like electricians.
If we focus, and use this change to build American infrastructure where it’s most
needed, we can help the American people, our nation and our planet.
How can Congress help? Here are some practical steps, not politicized overarching
promises or big spends:
• Carve out and cap the capital gains taxes for landowners selling land for clean
energy projects.
• Allow FERC to reward utilities that publicize their price for energy for longer
than 5 years.
• Reward utilities that publicly share the load data for interconnection and make
the queue system public and transparent.
Ms. CASTOR. Thank you, Governor.
Mr. Lau, you are recognized for 5 minutes.
STATEMENT OF PAUL LAU
Mr. LAU. Chair Castor, Ranking Member Graves, and members
of the committee, thank you for holding this important hearing and
for the opportunity to testify.
My name is Paul Lau, and I am the CEO of the Sacramento Mu-
nicipal Utility District, or SMUD as we are called.
SMUD is the Nation’s sixth-largest community-owned not-for-
profit utility, serving 1.5 million people in and around Sacramento,
California. We have provided world-class reliability at affordable
rates while protecting the environment for more than 70 years.
We set goals that are more aggressive than the states, and doing
so helped SMUD achieve many important firsts, including becom-
ing the first large California utility to have at least 20 percent of
our energy come from renewables. And, today, our power supply is
50 percent carbon free.
It is clear to me what we have done to be a leader simply isn’t
enough. I am disappointed and disheartened to report that Sac-
ramento is the fifth-worst city for ozone pollution. Our children are
30 percent more likely to suffer from asthma than the average
American kid. Thirty percent is unconscionable.
I am proud and excited to announce that our board of directors
has approved a bold and ambitious goal to completely eliminate
carbon emissions from our power supply by 2030 without compro-
mising reliability or affordability. It is the most ambitious goal of
any large utility in the U.S.
But it is much more than that. It is also a roadmap for others
to follow in pursuing the Biden administration’s goal of achieving
a clean power sector by 2035, with benefits for all.
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To get to zero, we will increase our renewables and battery stor-
age by 350 percent. We will retire two gas plants and retool the
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remaining three. And we will more than double our investments in
energy efficiency and electrifications.
We will continue to support our customer investments in rooftop
solar and batteries, and pioneer new technologies, like vehicle-to-
grid and virtual power plants, because we know our customers are
an important part of the solution.
Our past effort to be good stewards of the environment shows
how decarbonizing will provide benefits for air quality, the environ-
ment, and public health.
Clean energy infrastructure investment is critical, and we must
ensure the economic benefits are felt by all.
We will invest upward of $4.6 billion over the next 9 years in
clean technology jobs, and a healthier, more just future for genera-
tions to come. More importantly, we will make sure no community
is left behind.
SMUD’s plan will create thousands of jobs in the growing clean
sector. Some ask if we can afford the price tag to do all this. Our
answer is: We can’t afford not to.
And we won’t do it on the back of our customers. We will main-
tain affordable rates that today are about 35 percent lower than
our neighboring utilities, leaving over $800 million in our local
economy each year.
And we must partner with our cities, counties, policymakers,
communities, business leaders, the private sector, and our cus-
tomers like never before to align resources to maximum impact for
all.
Now, SMUD, we have a long history of supporting under-
resourced communities. We have low-income customers decarbon-
ized through energy efficiency and rooftop solar, and we will
continue to install EV infrastructure and help customers borrow
zero-emission vehicles in e-mobility hubs in underresourced com-
munities.
Through our Sustainable Communities programs, we identify
neighborhoods most likely to be underresourced due to the lack of
community development, income, housing, employment opportuni-
ties, and transportation, and we invest in them.
Now, through partnerships, we train folks from those commu-
nities to install electrical, solar, and EV-charging equipment, pro-
viding career training and job placements for over 200 participants
and counting.
Younger generations are eager to help. That is why our partner-
ships with universities and junior colleges to support STEM edu-
cation are so important, and our STEM scholarships come with
paid internships at SMUD.
SMUD spearheaded the development of the California Mobility
Center, a public-private consortium to accelerate clean, scalable e-
mobility technologies and solutions that are poised to generate $2.5
billion in economic activities and over 8,500 new jobs over the next
5 years.
I couldn’t be more proud of all that SMUD has accomplished over
the years, and I am confident that we can and will deliver our zero-
carbon goal, and we are excited to make Sacramento an example
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to follow and a region where climate conscious business wants to
be.
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Getting to zero by 2030 is not political. It is simply the right
thing to do for our economy, our children, our grandchildren, and
our planet.
And thank you. I look forward to any questions.
[The statement of Mr. Lau follows:]
Written Testimony of Paul Lau
CEO, Sacramento Municipal Utility District
at the House Select Committee on the Climate Crisis
Hearing on
‘‘Making the Case for Climate Action:
Creating New Jobs and Catalyzing Economic Growth’’
April 20, 2021
Chair Castor, Ranking Member Graves, and Members of the Committee, thank
you for holding this important hearing on the economic development opportunities
of climate action and for the opportunity to testify. SMUD supports the important
work of this Committee in identifying and advancing key recommendations from its
2020 Congressional Action Plan for a Clean Energy Economy, and in continuing to
work towards meaningful policy changes that will unleash the benefits of climate
action.
My name is Paul Lau and I am the CEO of the Sacramento Municipal Utility Dis-
trict, or SMUD. SMUD is the nation’s sixth-largest community-owned utility, oper-
ating on a not-for-profit basis to supply electricity to California’s capital region since
1946. Today, SMUD serves a population of 1.5 million throughout a service territory
of 900 square miles situated in the Sacramento Valley of Northern California.
We appreciate the opportunity to share our experience creating jobs and economic
growth through climate action. SMUD welcomes the chance to serve as a resource
for members of the Select Committee who may wish to learn more about our work
keeping the lights on 24 hours-a-day, 365 days-a-year for residents and businesses
in Sacramento, California while laser-focused on keeping our rates affordable and
our operations environmentally sustainable with every decision we make.
SMUD powers the region’s industries and homes using a generation mix that
today is roughly 50% natural gas, 20% hydropower, and 30% other renewable en-
ergy (solar, wind, distributed energy). We are governed by a seven-member Board
comprised of, and elected by, voters within Sacramento County. Our business model
and local governance mean we are extraordinarily responsive to the wishes of our
customers and local community. That’s one reason why our customers consistently
rank SMUD #1 in J.D. Power’s customer satisfaction surveys. As a utility, reliable
service, low rates, and environmental stewardship have long defined the three-
pronged approach SMUD applies in serving our customers.
The devastating effects of climate change continue to impact our region. Northern
California wildfires that made national news in recent years burned in counties sur-
rounding Sacramento. SMUD implements robust vegetation management, inspection
and maintenance, facility hardening and situational awareness programs that help
minimize the risk that a wildfire could spread through our service territory or dam-
age our equipment, facilities and other assets. Such proactive measures have helped
our customers and our region avoid the sorts of catastrophic fires that are becoming
more prevalent as our region logged some the hottest summers on record over the
past few years.
Still, the American Lung Association’s ‘‘2020 State of the Air’’ reported Sac-
ramento ranked in the top 5 worst U.S. cities for ozone pollution. And four of the
top five are in California. Children in our region are 30% more likely to suffer from
childhood asthma. Like wildfires, we view this to be a statewide emergency.
That’s why we have moved with urgency to reduce our carbon footprint. SMUD
has consistently set and achieved goals that exceed California’s environmental re-
quirements, which are already among the most stringent in the nation. SMUD was
the first large utility in the state to reach a 20% renewable portfolio standard in
2010, and our utility adopted a 33% renewable portfolio standard even before this
became a mandate in California.
In 2018, our locally-elected Board adopted an Integrated Resource Plan to put
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SMUD on the path to net-zero emissions by 2040. But even as we geared up for
that transition, our Board made the determination that it was not enough to meet
the gravity of the climate crisis. So, last year they adopted a Climate Emergency
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Resolution to accelerate that goal to 2030. We know it won’t be an easy road, but
the stakes are too high to not do everything we can to reach zero as quickly as pos-
sible. It will take a coordinated approach to clean energy policy development, invest-
ment, and engaging customers and other stakeholders to take part.
Today, I am proud to announce that our Board is poised to approve an ambitious
plan to surpass its own net zero goal and completely eliminate carbon emissions
from SMUD’s power supply by 2030. This would make SMUD the first large utility
in the U.S. to reach absolute zero carbon emissions, leading the way in context of
the Biden Administration’s goal of achieving a clean power sector by 2035. We just
concluded the public comment period on SMUD’s technical plan to accomplish this,
which involves deploying existing clean technology, innovation, retiring and retool-
ing our natural gas plants, and closely managing financial impacts.
Getting to zero by 2030 will require SMUD to invest upwards of $4.6 billion over
the next 9 years. To put this context, SMUD’s average annual revenue in the 3
years ending 2019 was roughly $1.5 billion. Our zero carbon investments will impact
all of SMUD’s operations and engage our customers as part of the solution. We will
increase our renewables and batteries by 3.5 times our current capacity, retire 25%
of our fossil fueled generators and run the rest on clean fuels, and we will more
than double our investments in energy efficiency and electrification. We’ll continue
to support our customers’ investments in rooftop solar and batteries as well as fo-
cusing on new technologies like vehicle to grid or virtual power plants, because our
customers are an important part of the solution to reach zero carbon emissions.
Importantly for me, as an engineer and a SMUD customer, as it is to all our cus-
tomers, our 2030 Zero Carbon Plan seeks to eliminate carbon emissions from our
power generation activities without compromising SMUD’s world-class reliability or
our commitment to affordability. To be precise on affordability, that means getting
to zero by 2030 while maintaining rates among the lowest in California, on average
35% lower than our neighboring utility, which effectively keeps over $800 million
in our local economy. So, we see this as an investment not only in reliable and resil-
ient clean technology and infrastructure, but also in jobs and a healthier, safer and
more just future for generations to come.
As the state capital of California, Sacramento’s largest employment sector has his-
torically been federal, state and local government. However, our region’s economy
today is more broadly based. Government and transportation are the largest sectors
of employment in the area followed by information technology and financial services,
education and health services, leisure and hospitality and construction. The Sac-
ramento region also recently updated its Comprehensive Economic Development
Strategy with the U.S. Economic Development Administration, which identified the
greatest growth potential in three industry sectors: food and agriculture, life
sciences, and future mobility.
SMUD’s customer base is among the most socio-economically diverse in the coun-
try. The population we serve is approximately 62% Caucasian, 23% Hispanic/Latinx,
17% Asian, 11% African American, 6% multi-racial and 1% Native American. Cur-
rently, the per capita income in Sacramento is roughly $32,000, median income is
$67,000, with approximately 12.5% of our population living below the poverty line.
As a community partner for nearly 75 years, SMUD is paying particular attention
to ensure the benefits of our zero-carbon future are felt across all our communities.
We do not want to just ‘‘bring others along.’’ That is why we have already held near-
ly a dozen community listening sessions on our 2030 Zero Carbon Plan and are con-
tinuing to seek feedback from local stakeholders. SMUD will continue to engage
with our diverse communities as we implement our plan so that they are all part
of the solution. As we aggressively decarbonize our power supply, we are striving
to empower our communities to work with SMUD to develop place-based strategies,
to make Sacramento communities more livable, resilient, and prepared to take ad-
vantage of a low-carbon future. We understand from experience that this can only
be achieved by recognizing Sacramento is one of the most diverse cities in the nation
and that we need to develop strategies respecting and building upon our local,
unique qualities.
SMUD’s Sustainable Communities program, launched in 2018, builds on the dec-
ades-long work we have done to support under-resourced communities. We have
identified areas in our region that are in particular need of assistance through a
Resource Priorities Map, developed from analysis of current data indicating neigh-
borhoods most likely to be under-resourced or in distress due to lack of community
development, income, housing, employment opportunities, and transportation.
SMUD partners with policy makers, transit leaders, technology companies, health
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care providers and other community-based organizations to maximize our impact
and collaboration with community members to help all our communities—from rural
to suburban to urban—to be part of a zero-carbon future.
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To this end, SMUD has invested more than $5 million with 130 local organiza-
tions to execute projects aligned with the four pillars of our Sustainable Commu-
nities program: social wellbeing, healthy environment, prosperous economy and eco-
nomic wellbeing. These partnerships have allowed SMUD to establish relationships
locally and create a pipeline to ensure that all communities are included in our zero-
carbon future. One such partnership is with Habitat for Humanity—Greater Sac-
ramento, through which we have brought solar and new energy solutions to hun-
dreds of new and existing homes for low-income families, and which will continue
over the next few years. By adding electric vehicle (EV) charging at many Habitat
homes through our partnership, SMUD is fostering the transition from fossil-fueled
based to electric transportation in our lower income neighborhoods.
SMUD is focusing our community outreach to improve equity in recruitment and
remove barriers many communities face in pursuing zero-carbon careers. SMUD is
helping local partners implement a workforce development program known as En-
ergy Careers Pathways, which trains participants in basic installation of electrical,
solar, and EV charging equipment. By the end of 2021, the program will have 125
graduates with a large number of participants hired to perform green energy jobs.
SMUD also provides staff to assist the California Conservation Corps in running its
energy lab which employs and trains young adults in electrical certifications and EV
fast-charging infrastructure. Similarly, SMUD’s energy ‘‘Barons’’ program provides
training to individuals in utility trades to develop their community energy manage-
ment skills for next-generation facilities management. These programs have trans-
lated into career training and zero carbon related job placement for over 200 partici-
pants, which SMUD sees as essential to ensure we have a workforce skilled to per-
form work needed to achieve Zero Carbon by 2030.
SMUD’s education outreach and workforce pipeline efforts aim to engage students
from kindergarten through college in energy-related topics and STEM disciplines.
Through partnerships with universities and junior colleges, we support a range of
STEM education programs and activities including a leadership program for stu-
dents at California State University, Sacramento. We offer paid internships for high
school and college students, and our STEM-focused college scholarships come with
paid internships at SMUD.
Through the California Mobility Center, a public-private consortium led by
SMUD, we are seeking to establish Sacramento as a center of electric mobility inno-
vation. The California Mobility Center, which began operations this year, fosters
clean, e-mobility technologies and solutions that can scale and become engines of
economic growth. E-mobility includes on- and off-highway vehicles and refueling and
charging infrastructure supporting autonomous, electric, connected, and shared/
smart mobility.
Recently, the Center was awarded approximately $1.4 million in Coronavirus Aid,
Relief and Economic Security (CARES) Act Grant funds from the City of Sac-
ramento and a $600,000 grant from the California Workforce Development Board
to provide workforce training to residents seeking advanced manufacturing careers.
The funds have been shared with La Familia, the Greater Sacramento Urban
League, Asian Resources, and the Sacramento Valley Manufacturing Association
and other community training partners to develop workforce training programs sup-
porting jobs in advanced manufacturing and mobility industries. Since the pro-
gram’s startup last year, over 350 participants received job-readiness or technical
training in manufacturing trades, more than 50 secured internships with local com-
panies, and over 30 participants have been placed in jobs. Many of the students
trained in the Energy Career Pathways program and the California Mobility Center
are being placed in union careers. Representatives of trade unions are brought in
as part of these trainings to evaluate student projects and to perform onsite inter-
views.
Workforce training is critical to begin now because demand for skilled employees
in the e-mobility sector is only going to rise. A recent economic assessment esti-
mates that from 2022–2027 the California Mobility Center and the companies it
draws to the Sacramento region could generate $2.5 billion in economic activity. The
California Mobility Center’s operations during that five-year span could directly and
indirectly support approximately 8,500 new jobs and generate over $900 million in
total annual labor income.
Among these new jobs, the assessment projects that the Mobility Center and its
service provider partners would directly employ approximately 130 individuals at an
average wage of $75,000. Expanding client companies are expected to add about
1,900 new jobs over the five-year period. With continued support of partners, an es-
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timated 3,150 trainees and interns will gain job skills development through Mobility
Center programs. Through the multiplier effect, an additional 3,400 indirect and in-
duced jobs and $455.5 million in labor income could be supported at other local busi-
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